NIT used to issue NOCs as per provisions of Section 22 A of Registration Act, 1908. However, the Supreme Court (SC), in the case of Government of Rajasthan Vs Vasant Nahta, struck down this provision.Ashish Roy | TNN | September 08, 2016, 16:00 IST

NAGPUR: Lease holders of Nagpur Improvement Trust (NIT) may no longer be required to obtain a no objection certificate (NOC) for selling, gifting or mortgaging their properties but similar relief is not in sight for plot holders of Nagpur Municipal Corporation (NMC) and Nazul department. The two agencies have no plans to stop issuing NOCs.

NIT used to issue NOCs as per provisions of Section 22 A of Registration Act, 1908. However, the Supreme Court (SC), in the case of Government of Rajasthan Vs Vasant Nahta, struck down this provision. The state government then issued a government resolution (GR) on November 8, 2006, asking local bodies not to issue NOCs under Registration Act. However, very few local bodies followed the GR and continued to issue NOCs. NIT is one of the first to comply with the SC order.

The rule applicable to NIT is applicable to NMC and Nazul too but they refuse to follow it. District collector Sachin Kurve said Nazul department did not ask premium plot holders for obtaining an NOC for selling or mortgaging their properties. “They are only required to inform about the transaction within a month. As for the plots obtained through allotment, there is a clear provision for seeking NOCs before selling or mortgaging the property,” he added.

Municipal commissioner Shravan Hardikar said the terms and conditions of NIT and NMC leases were different. “However, we will study whether the same rule is applicable to us. If we are also required to provide similar relaxation, we will prepare a proposal and send it to general body for approval,” he said. Sudhir Raut, standing committee chairperson and NIT trustee, also assured to look into the issue.

Swanand Soni of Nagpur Nazul Plot Owners Association demanded that Nazul department should immediately stop issuing NOCs for sale and mortgage. “Why should lease holders of different agencies be treated differently? The SC judgment is applicable to all agencies. Nazul lease holders already suffer discrimination when it comes to ground rent,” he said.

Builder TS Renu also demanded that NMC and Nazul department should follow NIT’s footsteps. “People used to clear ground rent dues for obtaining an NOC but the agencies can get rent by creating a separate mechanism,” he said.

Currently, the Goods and Services Tax (GST) is levied at 12 per cent on payments made for under-construction property or ready-to-move-in flats where completion certificate has not been issued at the time of sale.